In fall 2024, much of the Southeastern United States (US) was plagued with back-to-back storms, bringing major damage from Hurricanes Helene and Milton. These storms also worsened the financial strain on an already low Disaster Relief Fund (DRF), which had recently lifted Immediate Needs Funding (INF). The storms’ impacts are widespread and diverse, affecting not only the hardest hit states and localities but also other national funding programs. For example, the depleted DRF is delaying the release of funds for pre-disaster mitigation through the Building Resilient Infrastructure and Communities (BRIC) program, with no clear timeline for the release of the next cycle’s Notice of Funding Opportunity (NOFO) in sight.
In the meantime, FEMA has released updates to its Benefit-Cost Analysis (BCA) tool, impacting the eligibility and cost-effectiveness calculations required for all mitigation projects. Released on October 18, 2024, the revisions included changes to FEMA’s Pre-calculated Benefits, which are preset benefit values based on research and modeling. All mitigation projects require a cost-effectiveness determination as a basic eligibility requirement—and calculating a FEMA compliant Benefit Cost Ratio (BCR) can be a hurdle for many communities.
The changes incorporate revisions from May 2024 reducing the discount rate from 7.0% to 3.1% in cost thresholds for pre-calculated benefits. Notably, the threshold for acquiring structures in the special flood hazard area increased from $360,000 to $775,411, and the threshold for elevating or reconstructing structures in the special flood hazard area rose from $228,000 to $355,522. These increased pre-calculated benefits streamline the process for community officials, helping them provide safer, disaster-resilient options for residents and their homes. By expanding eligibility, these updates give communities and their citizens a stronger chance not only to recover but also to rebuild in ways that better protect their most vulnerable assets—their people.
Additionally, FEMA’s BCA tool now factors in new future climate impacts for flood projects. This update includes climate models that project increased precipitation, flood elevations, and discharge levels, making it easier for projects to meet cost-effectiveness standards. As a result, some projects previously struggling to prove their value may now qualify with these new calculations.
While the BRIC program’s next funding notice is still pending, these BCA updates mean that mitigation professionals are now in a stronger position to help communities develop projects that are not only more resilient but also more likely to secure federal support.
Amelia Muccio is the Director of Mitigation at Hagerty Consulting and an SME in disaster recovery. With two decades of experience in public health, disaster preparedness, mitigation, and financial recovery, Amelia has helped clients obtain billions in federal funds for both pre-disaster mitigation as well as after major disasters, including Hurricane Sandy, the California Wildfires, and Hurricane Harvey.
Lauren Dozier is a Senior Manager and a subject matter expert (SME) in disaster recovery and mitigation. Lauren has spent over a decade specializing in community preparedness, mitigation, and FEMA Public Assistance (PA). Her knowledge and experience of financial recovery has assisted communities nationwide to recover from and prevent future disasters.
Jason Ressler is a Mitigation Division Manager and a professional engineer with expert knowledge in water resource and floodplain management. Jason has helped with post-disaster mitigation work for many public and private organizations. Jason is a member of the Association of State Floodplain Managers (ASFPM) and is experienced in delivering funding and planning for resilience projects regarding stormwater management, water treatment, and hydrologic modeling for infrastructure.